The developments in the US, the events around oil prices and gold, and also the additional domestic fiscal measures would be the key factors which the markets would be watching as we move on to the next week
Domestic equity market benchmarks Sensex and Nifty settled lower for the second consecutive day in the financial year 2020-21 on Friday due to sell-off private bank stocks after Moody’s changed outlook on Indian banks to negative. The 30-share index Sensex ended 674 points or 2.39 per cent down at 27,591, while broader Nifty50 index finished below the crucial 8,100 level, down 170 points or 2.06 per cent. “The Indian markets opened and stayed negative, with reduced volatility. A ratings downgrade for the Banking sector, due to the impact of Covid-19 and ensuing stressed asset concerns, impacted the financial stocks. FIIs were net sellers to the tune of Rs.1100 Crores, on April 1, and show no signs of reversal. Markets are trading uncertainty, regarding the spread of the virus in India, as hope emerged of infections peaking in some of the worst affected global markets,” Vinod Nair, Head of Research at Geojit Financial Services, said. Next week, on Monday, domestic equity markets will remained close on account of Mahavir Jayanti.
Factors that dragged Sensex, Nifty 50-
Moody’s change outlook on Indian banks to negative- Private bank stocks led the fall in today’s trade after after the Moody’s Investors Services on Thursday changed the outlook for Indian banks system to negative from stable. Axis Bank, IndusInd Bank and ICICI Bank were the top Sensex losers. On the other hand, Sun Pharma, ITC, ONGC and M&M were top Sensex gainers.
Nifty Bank index drops over 5%- Except for Nifty FMCG and Nifty Pharma, all the sectoral indices finished in red today. Nifty Bank index dropped 5.27 per cent weighed by RBL Bank, Axis Bank and IndusInd Bank. While Nifty FMCG index traded higher led by gains in ITC, Emami and Colgate-Palmolive.
Coronavirus cases in India above 2000-mark- According to the updates from the Ministry of Health and Family Welfare, the total number of coronavirus positive cases crossed the 2000-mark in India on Friday.
ADB warns global cost of virus could top $4 trillion- The coronavirus pandemic could cost the global economy $4.1 trillion as it ravages United States, Europe and other major economies, the Asian Development Bank warned on Friday, AFP reported.
What to look for next week- “The developments in the US, the events around oil prices and gold, and also the additional domestic fiscal measures would be the key factors which the markets would be watching as we move on to the next week,” Joseph Thomas, Head of Research, Emkay Wealth Management, said.